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15 Passive Income Online Businesses That Give You Total Freedom

Craig Schoolkate April 14, 2022

15 Passive Income Online Businesses That Give You Total Freedom

Online businesses, commonly referred to as digital assets, can not only be a passive income stream to help you achieve financial freedom but can also give you location independence.

Millions of people have stepped out of the cubicle and walked out into the world with a source of income that goes where they go—their own small online business.

In the same vein, millions of investors have recognized the earning potential of digital assets and have incorporated these assets into their portfolios to strengthen and grow them.

Yet, digital assets are still in their infancy as a recognized investment asset because the online business mergers and acquisitions (M&A) market is young. As you can see in the graph below, Google searches for “how to make money online” grow consistently year after year, as everyday people look for new business opportunities that can set them free.

The online business market grows right along with the interest in making money online, as the pool of online businesses, which are potential acquisitions, gets deeper and wider.

15 Passive Income Online Businesses That Give You Total Freedom

We’ll get to how you can profit from this market growth in just a moment. First, let’s look briefly at traditional sources of passive income ideas to draw comparisons with online passive income.

What Are Some Sources of Passive Income?

We’ll review some of the most common passive income sources. However, they aren’t without their flaws.

The Stock Market

The most prominent passive income idea is investing in low-risk mutual index funds that follow a benchmark index, like the S&P 500. This is a collection of stocks from the 500 biggest companies in the world.

Investing in the S&P 500 gives you the opportunity to own shares in the likes of Apple, Tesla, and Amazon.

However, the benefit with an online business is that you have control over the asset and can affect its performance, whereas with stocks you have no control.

Real Estate

The other most prominent idea for earning passive income is investing in real estate to generate wealth from rental income.

A real estate investment requires a ton of upfront capital, which most of us don’t have. Also, rental properties have a physical location, so as part of your property research, you’ll have to visit numerous properties before finding the right one for you.

Even after you’ve acquired the property and have a rental agent managing it for you, your physical presence may still be for any maintenance or official issues.

In contrast, you can run an online business from anywhere in the world—a great opportunity to make your life relocatable and open your life to new adventures.

However, there is a way to invest in property with minimal upfront payment.

Real Estate Investment Trusts (REITs)

If you want to invest in property, but don’t have the capital, then you can invest as little as $1,000 into a real estate investment trust (REIT).

A REIT is a company that owns a portfolio of real estate properties. They run the properties for you, making the investment passive.

While index funds and REITs are terrific investments, they are very long term, with a low ROI in the short term. Plus, as with stocks, you have no control over the assets, so you cannot do anything to affect their performance.

However, these types of investments have been proven to generate wealth consistently over decades, which is why many investors advise making room in your portfolio for these types of investments.

However, if you’re looking for something more scalable, then you should dedicate some of your attention to online businesses.

Online Side Hustles

In your spare time, you can take courses on how to start an online business and start building it up.

There are many online courses—both paid and free, which you can find on platforms like Udemy or a digital entrepreneur’s YouTube channel—that teach you step-by-step how to build an online business. You don’t even need to have your own business idea because there are so many different types of businesses you can start, so some courses provide business ideas for you!

Many people in our community started this way. With a lot of hard work, dedication, and sacrifice, they’ve managed to build a side-hustle small business into an income-generating machine that allowed them to quit their full-time job. Now, they work only a few hours per week.

Some of them started with little cash. They built online business models that have minimal startup costs.

The catch is that building a side-hustle business from scratch isn’t an easy path to passive income. While it can earn you some extra cash in the short term, a ton of work goes into building your own passive income online business.

This is why many in our community opt to buy an online business that is already passively generating a cash flow.

Buying a Passive Income Online Business

An online business doesn’t require you to be in an office. You don’t even need to own a piece of physical property or equipment. It is passive and location independent.

By acquiring a turnkey online business, you skip all the upfront work of the startup phase and earn 100% of its profits from day one.

The entrepreneur who created the business will have built out its operational structure with employees, virtual assistants (VAs), and automation tools to automate most of the operational processes. This means you don’t have to run the business actively.

The brand will also be already established, so the marketing side is just a case of taking the brand to the next level. You can reinvest the business’ profits into growth and scale for a faster ROI.

Securing Financing for an Online Business Acquisition

When it comes to the cost of acquiring an online business, there are some great financing options, so you don’t need to pay 100% of the cost but still retain 100% of the business. The two best ways to secure this financing are seller financing and funding through our private lender.

Seller Financing

Seller financing is where you arrange a deal with the seller of the business to pay them an upfront amount (usually around 70%) and the rest over the course of a few years.

When you buy a business with seller financing through us, we create all of the contracts and legal agreements. You just need to sign and adhere to the terms, without worrying about anything going wrong or unexpected repercussions.

Funding through Our Private Lender

We work with a private lending partner that offers revenue-based financing with flexible terms. This allows you to pay only when the business is generating certain amounts of revenue.

Now that you’ve got a good idea of how online businesses can generate passive income, let’s dive into the 15 online passive income business models you can acquire today for financial and location freedom.

The 15 Passive Income Online Business Models

1. Affiliate Site

An affiliate site is a blog or other type of website that hosts content, such as articles, videos, or even a podcast. Techradar.com and nerdwallet.com are some familiar examples. They earn money when you click on a link and purchase a product discussed or reviewed in the article or video.

Affiliate sites are passive once they rank highly on Google and are generating considerable cash flow.

Once you’ve acquired the site, you will just need to come up with occasional growth plans for it, which will consist primarily of researching what topics to create content about and then giving briefs to your writers and VAs to put the plan into action.

The previous owner of the business should give you a templated process to follow to make this planning straightforward.

Outside of the growth plan, generally checking in on the site and employees to make sure everything is running smoothly should be enough to maintain this passive income asset.

The Average Price of an Affiliate Business

The average value of affiliate businesses is 45X the monthly net profit of the business. So, for a business earning $2,000 a month, you would expect to pay around $90,000.

That means you could expect to start earning a considerable ROI in less than 4 years, as opposed to the 10-20 years it would take an index fund to generate a considerable ROI.

A Passive Affiliate Site Should Come with the Following:

  • A VA to handle article publishing
  • Writers to write content
  • A VA to carry out keyword research
  • A VA to monitor the site (i.e. check links, update plugins, etc.)
  • Standard operating procedures (SOPs), including a keyword research SOP and content templates, for employees to follow

This Business Model is Suited to:

  • Someone with an interest in content marketing and search engine optimization (SEO)
  • Someone who is a creative marketer
  • Someone who enjoys following and reading blogs
  • Someone who has worked in journalism or a writing profession

2. Amazon Affiliate (Associates)

The Amazon Associates business model is the same as the affiliate model. The difference is that the site’s income comes through Amazon, as all the product links in the site’s content are to Amazon products.

The Amazon program is designed for beginners, with its feature-rich dashboard, tons of support videos, and information on the Amazon Associates program and affiliate marketing in general. This makes it easier to run than an affiliate site business model. However, Amazon pays considerably less than other affiliate programs, so it’s harder to earn as much money.

The Average Price of an Amazon Associates Business

The average value of an Amazon Associates business is 41X the monthly net profit of the business. So, sticking with the $2,000 a month example, you would expect to pay around $88,000 for a business this size.

A Passive Amazon Associates Site Should Come with the Following:

  • A VA to handle article publishing
  • Writers to write content
  • A VA to carry out keyword research
  • A VA to monitor the site (i.e. check links, update plugins, etc.)
  • SOPs, including keyword research SOP and content templates, for employees to follow

This Business Model is Suited to:

  • Someone new to affiliate marketing
  • Someone with an interest in content marketing and SEO
  • Someone who is a creative marketer
  • Someone who enjoys following and reading blogs
  • Someone who has worked in journalism or a writing profession

3. Display Advertising

Whereas affiliate and Amazon Associates websites earn money through affiliate marketing, display advertising sites earn by hosting adverts.

They are often the same type of site as an affiliate site, such as a blog. The difference is that a display advertising site earns when a user clicks on an advertisement.

This is the most passive online business model because you don’t even need to add and maintain links in the site’s content. The ads are integrated into the site, and you just let them run.

The Average Price of a Display Advertising Site

The average value of a display advertising business is 44X the monthly net profit of the business. A site earning $2,000 a month would be $88,000.

A Passive Display Advertising Site Should Come with the Following:

  • A VA to handle article publishing
  • Writers to write content
  • A VA to carry out keyword research
  • A VA to monitor the site (i.e. check advertising links, update plugins, etc.)
  • SOPs, including keyword research SOP and content templates, for employees to follow

This Business Model is Suited to:

  • Someone new to online business
  • Someone with an interest in content marketing and SEO
  • Someone who is a creative marketer
  • Someone who enjoys following and reading blogs
  • Someone who has worked in journalism or a writing profession

4. Lead Generation

The lead generation business model is another cousin of affiliate marketing.

The best example of a lead generation business is a website directory; when leads search online for services, the website refers them to matching service providers.

The service providers pay the owner of the site a commission on sales generated from leads. The beauty of this business model is that, if you’ve found a niche market such as leads for dog groomers in Delaware, then it is difficult for competitors to take your place.

This business model is also scalable, as you can expand the site to different areas and shoulder niches.

Overall, its level of passivity is similar to that of its affiliate cousin.

The Average Price of a Lead Generation Business

The average value of a lead generation business is 39X its monthly net profit. A business earning $2,000 a month would be worth $78,000.

A Passive Lead Generate Site Should Come with the Following:

  • A VA to handle article publishing
  • Writers to write content
  • A VA to carry out keyword research
  • A VA to monitor the site (i.e. check links, update plugins, etc.)
  • SOPs, including keyword and market research SOPs and content templates, for employees to follow

This Business Model is Suited to:

  • Someone with an interest in content marketing and search engine optimization (SEO)
  • Someone who is a creative marketer
  • Someone who can build website tools to help users find services
  • Someone who is good at market research
  • Someone who has a web of industry connections they could monetize

5. Digital product

Remember when we said at the start of this article that you can learn about online business through courses and videos? Well, online courses are the basis of the digital product business model.

Selling digital products such as online courses can be highly lucrative and very passive. Once the courses have been created, it’s just a matter of selling them on a website. Courses can be on any subject, so if you’re a teacher or are experienced in a certain field, you can easily create a course on your areas of expertise.

The profit margins for this type of business are high because the only considerable maintenance cost is marketing.

The Average Price of a Digital Product Business

The average value of a digital product business is 37X its monthly net profit. A digital product business earning $2,000 a month would be $72,000.

A Passive Digital Product Business Should Come with the Following:

  • VAs to handle customer service, market research, and website maintenance
  • A marketing employee or agency to run marketing campaigns
  • Software tools for market research and marketing

This Business Model is Suited to:

  • Someone with teaching experience who can design course curriculums
  • Someone with experience in social media marketing and SEO
  • Someone with video editing experience
  • Someone with teaching experience
  • Someone with expertise in a particular field

6. Subscription

A subscription business offers a service, be it physical or digital.

Examples of digital services that can be offered through the subscription model are software, digital downloads, and streaming. An example of a physical service is physical box sets. In either case, a paid subscription is the core of the subscription business model.

The customer pays a regular fee to receive the service. The most prominent examples of the subscription business model are Spotify and Amazon Prime. Spotify offers a digital service, and Amazon Prime offers a physical service.

The beauty of this business model is that it generates recurring revenue. Because it provides predictable income, recurring revenue is the gold standard for online businesses as digital assets. In contrast, other business models rely heavily on new customers for revenue.

The Average Price of a Subscription Business

Subscription businesses come with an average value of 44X monthly net profit. That means a subscription business earning $2,000 a month would be $88,000.

A Passive Subscription Business Should Come with the Following:

  • A VA to handle customer service
  • An automated email marketing system
  • A developer, potentially, if the site is built on custom software

This Business Model is Suited to:

  • Someone with ecommerce or development experience
  • Someone with knowledge of marketing and SEO
  • Someone who has worked for a company that offers subscription services

7. DropShipping

The DropShipping business model was created to allow entrepreneurs without any experience in ecommerce to sell their own products.

Product manufacturing and delivery is all handled by a third-party logistics (3PL) company, and products are delivered upon order, without the need for storage facilities.

Your job as the owner of the customer-facing store is to sell the products.

DropShipping stores are usually built on an ecommerce platform like Shopify or eBay. Once a DropShipping store is consistently earning income, it’s hands off because product fulfillment is taken care of by third parties.

The Average Price of a DropShipping Store

The average value of a DropShipping business is 34X its monthly net profit. A store earning $2,000 a month would be $68,000.

A Passive DropShipping Store Should Come with the Following:

  • VAs to handle customer service, inventory ordering, product research, and site maintenance
  • A marketing employee or agency to run marketing campaigns
  • Software tools for marketing

This Business Model is Suited to:

  • Someone with marketing experience
  • Someone with product manufacturer connections
  • Someone with project management experience
  • Someone with engineering experience*

*Though not directly related, ex-engineers who have had success with ecommerce-based business models have come to us.

8. Fulfilled by Amazon (FBA)

Fulfilled by Amazon (FBA) is another ecommerce business model. As its name suggests, it is built on the Amazon platform.

If you didn’t know already, third-party sellers account for 22% of Amazon’s total revenue.

With an Amazon FBA business, you have your own Amazon storefront from which to sell products. The previous owner of the business you acquire will have built out the logistical system on the backend of the business, including contacts or contracts with product suppliers and inventory transport and storage systems.

While it is up to the Amazon seller to source their own products and arrange shipments to Amazon warehouses, Amazon stores inventory and sends products to the customer.
This is a great business model to introduce yourself to ecommerce, as Amazon provides a ton of helpful resources and support. You can get set up easily on its platform, which has the biggest ecommerce consumer audience in the world, and Amazon handles product fulfillment.

The Average Price of an Amazon FBA Business

The average value of an Amazon FBA business is 44X its monthly net profit. An FBA business earning $2,000 a month would be $88,000.

A Passive Amazon FBA Business Should Come with the Following:

  • VAs to handle customer service, product research, and storefront maintenance
  • A marketing employee or agency to run marketing campaigns
  • A third-party logistics company (3PL) to handle inventory management
  • Software tools for product research, marketing, and inventory management

This Business Model is Suited to:

  • Someone with marketing experience
  • Someone with experience in logistics
  • Someone with project management experience
  • Someone with engineering experience

9. Amazon Fulfilled by Merchant (FBM)

Amazon created the Amazon Fulfilled by Merchant (FBM) model to keep ecommerce entrepreneurs within the Amazon ecosystem even if they don’t use Amazon’s fulfillment services.

As the name of this business model suggests, inventory supply, storage, and fulfillment are handled by the merchant selling on the Amazon marketplace. This allows entrepreneurs to sell through their own fulfillment network, while still accessing Amazon’s marketplace.

Usually, this business model is integrated with the Amazon FBA model by business owners when the business owner has their own warehouse. In this case, it makes more sense to deliver products through a third party, as opposed to storing and sending through Amazon’s services.

The Average Price of an Amazon FBM Business

The average value of an Amazon FBM business is 26X its monthly net profit. An FBM business earning $2,000 a month would be $52,000.

A Passive Amazon FBM Business Should Come with the Following:

  • VAs to handle customer service, product research, and storefront maintenance
  • A marketing employee or agency to run marketing campaigns
  • A 3PL company to handle inventory management and order fulfillment
  • Software tools for product research, marketing, and inventory management

This Business Model is Suited to:

  • Someone with marketing experience
  • Someone with experience in logistics
  • Someone with project management experience
  • Someone with engineering experience

10. Traditional Ecommerce

Now we come to the classic ecommerce model: no Amazon platform or order fulfillment network, like you get with FBA, and no automated logistics management, like you get with DropShipping. Everything is built and processed by the ecommerce business owner.

That isn’t to say this cannot be a passive income business model.

If the business owner has built an efficient logistical system, even inventory management can be automated to some degree, using 3PLs and inventory management software tools.

The Average Price of an Ecommerce Business

The average value of an ecommerce business is 44X its monthly net profit. An ecommerce business earning $2,000 a month would be $88,000.

A Passive Ecommerce Business Should Come with the Following:

  • VAs to handle customer service, product research, and storefront maintenance
  • A marketing employee or agency to run marketing campaigns
  • A third-party logistics company (3PL) to handle inventory management
  • Software tools for product research, marketing, and inventory management

This Business Model is Suited to:

  • Someone with marketing experience
  • Someone with experience in logistics
  • Someone with project management experience
  • Someone with engineering experience

11. Amazon Kindle Direct Publishing (KDP)

Amazon is offering another entry-level business model with Amazon Kindle Direct Publishing (KDP).

This model allows you to sell eBooks and physical books on the Amazon marketplace.

The best part is that you don’t even have to write the books. Most KDP entrepreneurs outsource book production to professional writers and book design to designers.

Amazon KDP is one of the most straightforward online business models, with minimal associated costs, as eBooks are electronic and no physical inventory is required. With a solid book research and production system, this type of business can be run with just a few hours of work per week.

The Average Price of an Amazon KDP Business

The average value of an Amazon KDP business is 41X its monthly net profit. A KDP business earning $2,000 a month would be $82,000.

A Passive Amazon KDP Business Should Come with the Following:

  • VAs to handle customer service, market research, and website maintenance
  • A marketing employee or agency to run marketing campaigns
  • Software tools for market research and marketing
  • A graphic designer to create book designs
  • Writers to write books

This Business Model is Suited to:

  • Someone with an interest in books or writing
  • Someone with experience in marketing
  • Someone with branding or graphic design experience

12. Amazon Merch

Amazon Merch is the easiest path into ecommerce, as it is one of the simplest online business models to operate.

This model is built on print on demand (POD). It is similar to DropShipping in that products are produced only when ordered. The difference is that the products are exclusively accessories and attire.

The owner of the Amazon Merch business creates designs for t-shirts and other apparel. When a customer orders a product, it is printed and sent to the customer.

This can be a lucrative business if the product and brand capture a popular belief or trend. The merchandise market is huge because of consumers’ attachment to their beliefs and ideas.

The Average Price of an Amazon Merch Business

The average value of an Amazon Merch business is 39X its monthly net profit. An Amazon Merch business earning $2,000 a month would be $78,000.

A Passive Amazon Merch Business Should Come with the Following:

  • VAs to handle customer service, inventory ordering, product research, and site maintenance
  • A marketing employee or agency to run marketing campaigns
  • Software tools for marketing
  • A graphic designer to create product designs

This Business Model is Suited to:

  • Someone with marketing experience
  • Someone with project management experience
  • Someone with engineering experience

13. Service

This is the most difficult business model to make passive, but it deserves a mention.

A service business is what it says on the tin: a business that offers a service. In the online business world, this could be writing services for bloggers, graphic design services, or web development services.

For a service business to be passive, it needs to have a loyal team and solid, repeatable operational procedures. We have a service business for sale right now that takes the seller only two hours per week to run.

Productized service is another form of a service business model that offers services in a packaged form. A good example is Design Pickle, which offers unlimited graphic design services for a monthly fee. Customers sign up and send their project requests within the platform, and then Design Pickle teams work on the projects.

This model offers a way for a service business to generate recurring revenue from a repeat-customer base.

The Average Price of a Service Business

Service businesses have an average value of 46X monthly net profit. That means a service business earning $2,000 a month would be $92,000.

A Passive Service Business Should Come with the Following:

  • Loyal teams to carry out the services
  • A solid operational structure with easy-to-follow SOPs
  • A CEO-type employee to run the business

This Business Model is Suited to:

  • Someone with project management experience
  • Someone with experience running a service company
  • Someone with experience in the service being offered

14. Software as a Service (SaaS)

We mentioned that ecommerce entrepreneurs use software tools to run their businesses, but did you know that you can buy the businesses that offer these tools?

The SaaS business model is one of the most desirable because, like the subscription model, it generates recurring revenue. However, SaaS is a much bigger market. There are many more SaaS businesses, and software is deeply ingrained in the operations of the online business world, making SaaS one of the biggest online business models.

SaaS businesses are also very passive because they operate entirely on software. For the most part, all that’s required to maintain a SaaS business is a developer to keep on top of technical issues and a VA to offer customer support. So, despite what you might think, you don’t need to be a tech-savvy person to own an SaaS business.

The Average Price of an SaaS Business

Because of the passive nature of SaaS businesses and the fact they generate recurring revenue, their average value is higher than all other business models listed here at 52X monthly net profit. That means a SaaS business earning $2,000 a month would be $104,000.

A Passive SaaS Business Should Come with the Following:

  • A developer or developers to maintain the software
  • A VA to handle customer service
  • An automated email marketing system or a sales team for a business to business (B2B) SaaS

This Business Model is Suited to:

  • Someone with development experience
  • Someone with marketing and SEO expertise
  • Someone who is good at market research
  • A digital entrepreneur who understands the target market for software tools

15. App

It can’t be overstated how ginormous the app market is. Anyone with a smartphone uses multiple apps in multiple areas of their life.

An app that serves a particular need for a niche audience can be a great asset. The app business model shares many of the positive qualities of the SaaS business model, including recurring revenue and a passive nature with a basis in software.

The Average Price of an App Business

We don’t sell many apps on our marketplace, but we sold one last year at 36X of its monthly net profit. With that value, a business earning $2,000 a month would be worth $72,000.

A Passive App Business Should Come with the Following:

  • A developer or developers to maintain the application software
  • A VA to handle customer service
  • An automated email marketing system or a marketing employee or agency

This Business Model is Suited to:

  • Someone with development experience
  • Someone with gaming experience
  • Someone with marketing expertise
  • Someone who is good at market research
  • Someone who is a part of the app’s target audience

Integrated Business Models

You might have noticed quite a bit of crossover between some of the business models listed above.

Some online businesses also have mixed monetizations, meaning they earn passive income from multiple sources. These business models are more secure than single-monetization models, as they don’t rely on a single source for 100% of their income.

With a diversified set of income streams, a business is durable against market changes and the risks associated with online businesses, including Google algorithmic updates, advertising platforms like Amazon Web Services (AWS) and Facebook banning ad accounts, Amazon or other affiliates changing their terms of service, or the introduction of new industry laws. Mixed monetization means that if one revenue stream takes a hit, the business still has other income sources actively keeping the business afloat.

In online business, there are two main mixed-monetization business models: content sites and ecommerce.

The 2 Passive Multi-Income Business Models

1. Content Site

Content sites are built on affiliate and advertising earnings, with some also earning through lead generation and selling info products. They earn the same way that these forms of monetization earn as individual businesses, just all on one site.

With this business model, you can earn in multiple ways from each user of your site: when they click on an ad, when they click through your affiliate links and make a purchase, when they purchase an online course, and when they search for a service and reach out to the provider to make an appointment.

If you’d like to see an example of a content site in action, take another look at techradar.com and note all the display ads and affiliate links for Amazon and off-Amazon products. This site even offers a subscription magazine that comes in physical and digital copies.

This is a terrific example of the numerous ways content sites can make money.

2. Ecommerce

Traditional ecommerce, FBA, and DropShipping can all work in sync in a monster ecommerce business.

You can use Amazon’s huge audience and fulfillment network to make Amazon sales. You can build your own audience off of Amazon and sell private label products through traditional ecommerce. You can integrate DropShipping into your store, where upsell orders are fulfilled through DropShipping.

Many ecommerce businesses on our marketplace are monetized through multiple methods. A large portion of their income is usually generated through FBA or traditional ecommerce primarily, with secondary income coming from either FBA or ecommerce, and a small amount through DropShipping or wholesale platforms like Walmart.

By selling products on multiple platforms, the business’ brand reaches many audiences and becomes a leader in its niche. This brand reach is key to long-term success in online business.

Yes, multi-income business models are the gold standard. They give you secure income while being passive like the other individually-monetized models. With their synchronistic capabilities, they can work like income-generating machines, with each monetization boosting the others.

While online businesses are great assets, you don’t have to own 100% of one to earn income from them.

Over the 10+ years of running an online business brokerage, we have found an audience who want to profit from digital assets without having to own a whole business. That’s why we decided to create a platform that allows investors to own fractional shares of a variety of online businesses, just like with stocks.

Own Fractional Shares of a Range of Online Businesses

The name of the platform is Empire Flippers (EF) Capital. It matches accredited investors with established online business operators. Using funds raised from investors, these operators acquire and grow businesses from our marketplace.

The operators are experienced digital entrepreneurs who have usually bought and sold businesses with Empire Flippers before. If they aren’t from our marketplace, we verify their track record of running online businesses.

Each operator has a speciality: some are experienced with content sites, others with ecommerce businesses. They will acquire businesses matching specific criteria that align with their experience and expertise.

All the operators have detailed acquisition and growth plans. These are presented to investors, so they can see what the operator will do to scale the asset before selling it for an ROI after three to four years.

Investors can build their own digital asset portfolio within EF Capital by investing in multiple deals with various online business models. They are paid a percentage of the business’ profits each quarter and are given quarterly reports showing the progress of their investments.

To facilitate the deals, EF Capital sets up all the necessary legal structures and securities compliances.

The operators invest 5% of their own capital, so they have skin in the game, and EF Capital retains a 10% profit share to ensure all interests are aligned.

As they have the flexibility to invest in multiple business deals, investors can diversify the risk of their investments.

To give you an idea of the potential returns that can be generated through EF Capital, investors who invested in Round 1 of 2021 received a 5% cash-on-cash return in Q4 of 2021, as the net income across all businesses had increased 22% since acquisition.

If you’re interested in learning more about EF Capital, then you can visit our information page. There, you can also access the deals currently open for investment.

Where and How Do You Find a Passive Online Business?

The best place to find a quality online business is through a brokerage like us. We have teams dedicated to each stage of the acquisition process, who will hold your hand through each step. These teams include sales professionals who help you negotiate the best deal and a migration team who transfer the business assets over to you. Plus, our marketplace is curated by our vetting team, so you only ever see quality businesses.

Register for a free EF account to search for businesses using our search filters. You can find a business that meets your criteria in minutes. Also, don’t forget to look out for the Lender Approved badge indicating businesses that are eligible for funded acquisition.


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